Parametric insurance solutions provide security that you won’t find with more conventional insurance products. The distinguishing feature of parametric insurance is that it depends on an external event, for example a hurricane or earthquake. If this insured event occurs, you receive compensation, which is graded according to the severity of the incident.

Have you ever heard of a retailer taking out insurance against poor sales revenue? At first glance, it’s not the sort of risk you would normally consider insurable. However, if you dig deeper it’s not as fanciful as it may seem.

Natural catastrophes are increasing in frequency and severity. What is more, the gap between economic and insured losses has remained stubbornly large. The consequences are especially severe in emerging markets, which are both the worst hit and the least prepared.

The Swiss Re Cat Bond Performance Indices (the “Indices”) are a suite of indices designed to reflect the returns of the catastrophe bond market. Swiss Re Capital Markets launched the Indices in 2007 as the first total return indices provided to the sector.